The market environment forced the temporary storage price of corn to fall for the first time in seven years.

The corn temporary storage policy, which was rumored to be terminated this year, has made its debut again.

On Friday night, the long-awaited corn storage policy for 2015 was finally announced. Liu Dong, a corn analyst at Zhuochuang Information, told the Daily Economic News that the biggest change in the temporary reserve policy this year is the unification of prices. the unified purchase price of three provinces and one region in Northeast China is all 2000 yuan per ton, which is calculated at 2240 yuan per ton in Jilin Province last year. The decline is more than 10%.

Liu Dong believes that it is expected that with the gradual listing of new corn, coupled with the negative impact of the policy, corn prices will decline significantly.

The price is unified into the biggest change this year.

On Friday, the National Development and Reform Commission, the Grain Administration, the Ministry of Finance, the Agricultural Development Bank and other departments jointly issued a notice: the purchase price of temporary storage corn is set at 1 yuan per catty, which is up to 0.13 yuan lower than last year's temporary storage price. it is also the first time that temporary storage prices have been reduced since the introduction of the corn temporary storage policy in 2008. "the biggest change in the price of corn for temporary storage this year is the unification of the price, which is 2000 yuan per ton in three provinces and one region in Northeast China." Liu Dong told the Daily Economic News, "based on 2240 yuan per ton in Jilin Province last year, the decline reached 10.71 percent." At present, corn prices are not fully market-oriented, the announcement of temporary storage prices is obviously bad news for the market, of course, before the announcement of the policy, the market has a certain expectation. "

In fact, corn prices have fallen again and again before and after the announcement of the corn temporary storage policy.

According to Zhuochuang Information Monitoring, as of Sept. 21, the national average price of corn was 2105 yuan / ton, down 5.61% from the beginning of this month. In the same period last year, the price was 2511 yuan / ton, down by 406 yuan / ton, 16.17% lower than the same period last year. "before the announcement of the policy, the decline in corn prices was mainly affected by the supply and demand environment. First of all, corn production has been increased year after year in recent years, and corn supply has been increasing, but the downstream demand has not improved significantly. Especially the demand of downstream feed enterprises." Liu Dong said that according to Zhuochuang's monitoring, feed sales in many feed factories have declined significantly this year, with a decline of 20%, 30%, and even a sharp decline of 40%, 50%, in many feed enterprises. The other is that the price of domestic corn is much higher than that of foreign countries, resulting in a significant increase in the number of imported corn substitutes, further driving down the price of domestic corn. "

Corn storage is approaching the critical point of reform.

In fact, lowering the temporary storage price of corn is a last resort measure under the temporary storage policy.

As the northeast temporary storage corn market support policy implemented since 2008, the corn temporary storage purchase price has continued to rise for many years. In Jilin region, the price per ton of corn has increased by 740 yuan in the five years from 2008 to 2014. Under the influence of high purchase volume and high purchase price, domestic corn prices have skyrocketed, and the state reserve corn inventory is difficult to eliminate. The formation of cheap "foreign goods" into the market, while high-priced "domestic goods" into storage.

In this case, the demand for "corn, soybeans, cotton, rapeseed and other varieties, should pay attention to play a decisive role in the formation of market prices," the voice is growing.

During the "two sessions" this year, deputies to the National people's Congress put forward a proposal to "liberalize the prices of major crops and agricultural products." in response to this, the Ministry of Agriculture replied that the minimum purchase price should continue to be adhered to for the two food rations of rice and wheat. and for corn, soybean, cotton, rapeseed and other varieties with large demand elasticity, long industrial chain and high degree of market connection outside the country. We should pay attention to giving full play to the decisive role of the market in forming prices, guide production through market price signals, and adjust supply and demand. "in recent years, the temporary storage price of corn is on the high side, and now it is difficult to maintain." Li Xirong, executive vice president and secretary-general of the China Feed Industry Association, believes that "now corn cannot be stored and sold, and it is subject to the impact of foreign countries." The biggest users of corn are feed companies, who began to import large quantities of alternative products such as sorghum, wheat and barley because of the upside-down price. Under the circumstances that the supply of corn exceeds demand, a large number of alternative products have been imported, further aggravating the contradiction between supply and demand of corn. How to adjust China's corn purchase and marketing policy this year or in the future is a major issue that we are facing together. "

So what kind of reform path will be taken for corn storage? Li Xirong said, "at present, a common view is to appropriately lower the temporary storage price." Personally, I think that more adjustment will have a greater impact on farmers' income, and there will also be problems in selling national reserves at a reasonable price. So will it work if the adjustment is less? I think it is necessary to make appropriate adjustments. It can even be divided into two steps, adjusting 7-8 points this year, observing it, and adjusting a little more next year. I think it is both positive and prudent to do so. " "in the current corn market supply exceeds demand, temporary storage corn price reduction is also its inevitable choice." "although the temporary reserve policy faces many drawbacks, it is obviously not appropriate to cancel it directly," Liu Dong told the Daily Economic News. The original intention of policy formulation is to protect the interests of farmers. If the policy is cancelled directly, corn prices will certainly fall sharply, which will do too much damage to farmers. The adjustment of policy should be carried out step by step, and there should be a process of constant repair. "